What is the debt to equity ratio
Problem
A company has a WACC of 17% p.a. and a cost of equity of 25% p.a. The company has to pay 8% p.a. interest on its debt. If the corporate tax rate is 28%, what is the debt to equity ratio?
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A company has a WACC of 17% p.a. and a cost of equity of 25% p.a. The company has to pay 8% p.a. interest on its debt. What is the debt to equity ratio?
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